Revival strategy

for Automobile
tyre
 Overview

The Indian Tyre industry: The Rs.20,000

crore Indian Tyre Industry, is highly raw material
intensive and predominantly a Cross Ply (or Bias)
tyre manufacturing industry. It is highly concentrated
wherein 10 large manufacturers account for over 95%
of the total tonnage production of 11.35 lakh M.T. It
produces all categories of tyres, except Snow Tyres
and Aero Tyre for which there is no demand
domestically.
 Indian tyre Industry
Indian tyre
industry

Commercial
Passenger Others
vehicles
vehicles

MHCV HCV LCV Farm Industrial

OTR
Vehicle vehicle

Motor
Cars scooters
Cycles
 Introduction Tough Tires
• Though Tyres, Ltd. engages in the manufacture and marketing
of various bias ply tyres and now with Silica radial tyres . It
offers products for two and three wheelers, passenger cars,
Jeep , light commercial vehicles , and farm vehicles. The
company was Incorporated in 1990 and is based in Kerala,
India. As Tough Tyres Ltd “Get the toughest out of it”.
• Wherever you are if you are looking for tyres we are never far
away.
 Vision Mission of Tough
• VISION-
TO BE AMONGST THE MOST ADMIRED COMPANIES IN INDIA AND
WORLD WIDE COMMITED TO EXCELLENCE.”

• MISSION-
BE A CUSTOMER OBSESSED COMPANY
NO. 1 TYRE BRAND IN INDIA
MOTIVATED AND COMMITED TEAM
DEVLOPMENT FOR HIGH PERFORMANCE ORGANISATION
 Our Goals
At Tough, we are committed to protecting and
respecting the environment.
Leading vehicle manufacturers use our tyres as original
equipment because they trust and respect our quality,
development techniques and innovation.
However, this alone is not enough. We must also meet
the demands of the environment by adopting
sustainable practices and using our resources more
efficiently.
We practice the latest manufacturing and management
techniques and work only to the highest standards as
outlined in international standards.
 Reasons for downturn
Only bias technology was
No Endorsements available

Inflation Consumer mind set

Manufacturing Process
 Material Used In Tyres
Materials used:
Rubber (Natural and synthetic) 38%
Fillers (Carbon black, silica, carbon chalk) 30%
Reinforcing materials (steel, rayon, nylon) 16%
Plasticizers (oils and resins) 10%
Chemicals for vulcanization(sulphur, zinc
oxide, various chemicals) 4%
Chemicals as antioxidants to counter ozone
effect and material fatigue 1%
Miscellaneous 1%
Bias Construction V/S Radial
Construction of tires
 Advantages

●
Longer life
●
Better steering control
Radial tyres ●
Lower rolling resistance
●
Better grip at higher speeds

●
Flexibility in the tire
Bias Tyres ●
Smooth ride on rough surface
For 3 Wheelers & 2 Wheelers

LCV
Products manufactured For

cars
Acelere H/V speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride

Acelere sportz
V/W speed rated with superb wet and dry performance and exceptional driving pleasu
Innovative asymmetric tread pattern for maximum performance
Special silica tread compound for better fuel economy and wet performance
Rim protector
W/Y speed rated with a quick steering response
for a sporty performance
Unidirectional V-shaped tread design resists aquaplaning
Execellent handling at high speeds
Special silica tread compound for better fuel

Amazer xl/T speed rated

Reinforced tyre construction for long life
Visual alignment indicator for detecting
Especially designed for low noise
Products for Tractors
Demand Cycle
Major Players and Market
Share
 Enviorment Analysis
Socio Cultural
Environment
Explosion in the number of nuclear families
As the joint-family system crumbles and the number of nuclear families explode,
more small families seem to be demanding a two/four wheeler for themselves. This
has directly resulted in higher sales of tyres in the past decade.
Higher car density per family
The number of upper-class and upper-middle class families with more than one car
per family seems to be increasing exponentially. This is especially true in cities
where Brand Strategy Analysis working couples find it difficult to survive without
more than one car for transportation. With higher disposable incomes, these families
are finally able to afford this need.
Shifting away from Savings, to EMI culture
Another notable trend that seems to be fuelling car sales (and therefore tryre sales)
is the shift in the middle-class consumers saving habits. The Indian middle-class
family has long been known for its savings frenzy. But with a younger workforce,
higher disposable incomes, lower unemployment and the influence of globalization,
the average Indian middle-class family is slowly warming up to the idea of EMI and
buying on credit. This has helped in furthering the sales of passenger cars
significantly.
 Swot Analysis
Strengths
· Right products, quality and
reliability.
· Superior product performance vs.
competitors.
· Brand Image
· Products have required
accreditations.
· High degree of customer
satisfaction.
Opportunities
· Profit margins will be good.
· Could extend to overseas.
· Could seek better supplier deals.
· An applied research centre to
create
opportunities for developing
techniques to provide added-value
services
Weakness
· Not very popular in the
international market
· Delivery-staff need training.
· Customer service staff need
training.
· Processes and systems, etc
· Management cover insufficient.
Threats
· Vulnerable to reactive attack by
major competitors.
· Lack of infrastructure in rural areas
could constrain investment.
· High volume/low cost market is
intensely competitive.
 Sales Policy
Sales advance scheme
Credit Terms
Prompt payment discount
Cash discount
Quarterly Turnover discount
 New Strategy
• We at tough are using silica instead of carbon black
because it will improve the
durability of tyres.

• Tough has worked on repelenishment of the stock.

• We have also brought in promotions with offers

such as “wheel-pe-deal”.
 Promotional Strategies
• The company will be heavily investing on print, TV and outdoor
media, to drive its brand into the minds of the customer.
• Regularly introducing festival offers, consumer discounts and other
sops through its dealer outlets. These offers to customers are called
sell out schemes
• Freebies with every tyre purchase worth Rs.1000 for car, bike,
tractors or autorickshaws, LCV.
• Free Tyre and battery check ups every 3-4 months
• Publicizing through highly visible events such as Motor Sports . And
endoresements through common man.
• Recommendation through word of mouth by garages and mechanics
• Providing mobile garage for just company tyre owners at evry 30
kms
• Display through automobile expos
 Product
Core Benefit:
This is the service or benefit the customer is customer is really buying. In the tyre
industry, the core benefit that a customer is looking for is a tyre that his vehicle can run
on.
The Basic product:
The basic product that all tyre manufacturers offer, is a tyre that fits the customer’s
Vehicle
The Expected product:
The expected product defines the basic features that a buyer assumes in the product
offering. In a way, this is the POP for the product in its membership category.
In the tyre industry, the basic product would be a tyre that meets the following criteria:
1) Quality: Material quality of the tyre must be very good.
2) Safety: The tyre must meet national/international safety standards under high
stress conditions.
3) Durability: The tyre must survive wear and tear for a decent period of life.
4) Mileage: The tyre must offer improved mileage (especially true for Radial tyres).
5) Grip: The tyre grips the road firmly under all weather conditions.
6) Cornering and braking: The tyre must perform well while cutting corners and braking at high
speeds.
7) Ride comfort: The tyre must offer a smooth and quite riding experience.
 Product
Contd…..
As per the customer wants we at tough offer all the following
Tough differentiates itself from the competition, by offering tyres
that exceed the customer’s quality requirements, ride comfort and
value for money. We ensure that our tires meet international quality
standards, last much longer (thus giving more value for money),
and performs smoothly and quietly (ride comfort). it stresses on the
durability of its tyres on rough Indian roads.These are the three
pillars that Tough differentiates itself on.
 Pricing strategy

Penetration ●
We have set a low price to increase sales
and market share.
Pricing

Cost ●
Where in atleast the cost incurred is
recovered
Recovery
 Pricing strategy
Using the Markup pricing method
The tyre industry being a very raw material
intensive industry, the input costs mainly
decides the price of tyres. In fact, 90% of a tyres
cost comprises of its raw material costs. Markup
pricing is the common pricing method followed
across the tyre industry. This involves adding a
standard markup to the tyre’s production cost.

Following the leaders pricing initially

 Placing strategy
Once the product has been decided upon and the market segmented, targeted and the product
positioned, it is time to decide how and where the marketer can deliver the value (product) to
the
customer. This is done through marketing channels that make the product available for
consumption to the customer.

We will be using push as well as pull strategy

Direct and Indirect Channels of Distribution

Direct channels:
Direct channels consist of a marketer selling directly to the final customer.
Of the three types of customer segments in the Passenger Car Tyre market, two
customer segments call for a direct channel:
a) OEMs :
Given the huge quantities required and the Just In Time logistics employed,
OEMs source their tyre supplies directly from manufacturers. Tyre
manufacturers therefore most set up exclusive distribution channels to service
these OEMs.
b) Exports:
To minimize logistical complexities and supply delays, Tyre exports are
handled directly by the manufacturers. Tyre manufacturers set up direct
distribution channels that supply tires directly to export destinations
 Placing Strategy
Indirect channels:
Indirect channels consist of one or more intermediaries between the manufacturer and the final
customer.

The Replacement market segment of the tyre industry caters to individual customers. It therefore
requires wide reach and deep market penetration. The distribution channel for replacement market
comprises of the manufacturer, warehouses/ C&F (carry & forward) agents, and the dealers. The Tyre is
finally sold to the customer by the dealer.

INDIRECT CHANNEL
(FOR THE TYRE REPLACEMENT
SEGMENT)
Manufacturer

Warehouse/ C & F
agent

Dealer

Consumer
 Placing Strategy
E-commerce
Through automobile company websites
will be placing our product in the market
Though service station websites will be
displaying our product
 THE GOLDEN RULES FOR TYRE SELECTION

1. This rule applies to all categories of tyres, with the exception

of passenger.

2. Fit the largest Tyre size possible, as recommended by the

vehicle.

3. Use the lowest ply rating-this does not apply in the case of
steel cord Radial Truck tyres.

4. Recommend the correct Tyre Pressure for the Tyre size Ply
rating, Load and operating
condition.

5. This pressure should ideally be as low as possible, without

under inflating the tyres.
 Disha Dhanesha
Deepali Pardeshi
Rajesh Kurmi
Shrikant Yadav
Chandan Nagar
Priyanka Vartak
Shehzad Butt
Rohit Pipalwa